Top alts witnessed a bit of a recovery period on Monday morning but Dogecoin was slightly late to the party. While the likes of Monero, Avalanche, and Fantom spiked by over 10%, DOGE’s daily gain was limited to just 2.5% at press time. Can DOGE catch up to its smaller rivals? Let’s have a look at a few internals and externals first.
Dogecoin price showed early signs of breaking away from its consolidation spree after an hourly candle cut above the hourly 200-SMA (green) for only the second time in May. The technical development shows a positive market trend and opens the price to more short-term growth.
Limited upside for Dogecoin
But what’s the maximum upside available for Dogecoin before the round of corrections grip the market? According to the Visible Range profile, the region between $0.0800-$0.0930 was highly liquid – an area in which the price tends to travel at a relatively slower pace. Hence, any breakouts above $0.0930 would likely require clear bullish signals.
However, there wasn’t much to write home about at Dogecoin’s hourly indicators. Firstly the hourly RSI was rejected at the overbought zone and slipped back to the mid-line, showing that sellers were actively pushing the price lower on the chart.
Secondly, the Squeeze Momentum Indicator, although green, showed that there was little volatility and reflected an ongoing market squeeze. Such market conditions are an indication of minimal buying pressure in the market.
Buying pressure offset by sellers?
Furthermore, social volumes were lackluster during the day, which meant that Dogecoin could not rely on hype trading to extend its value beyond significant resistance levels.
The order book for Dogecoin was also a mixed bag. Although buy orders dominated the past 12 hours, sell pressure was creeping up on the 1-minute, 30-minute, and hourly time frames.
Conclusion
Looking at the aforementioned data, Dogecoin would likely continue to trade in the green in the next 24-48 hours but investors still needed to maintain caution. The upside was likely to be limited to $0.930 and traders must maintain a tight take profit to maximize their gains.